Jersey City today filed a $400 million lawsuit against the Port Authority, alleging the bi-state agency owes back taxes on the dozens of properties it owns citywide.

Mayor Steve Fulop revealed to The Jersey Journal six months ago that he planned to file the suit, and in a statement issued by his spokeswoman today, he said the city "will not be bullied or pushed around" by the Port Authority.

Months negotiation between the Port Authority and the city have been unsuccessful, according to Fulop.

The city also intends to pursue legal action to block the Port Authority's planned $118 million waste transfer station at Greenville Yards on the city's southern end.

The lawsuit, filed in federal district court, will "ensure Jersey City receives its fair share in taxes from the Port Authority," Fulop said in the statement.

The bi-state agency owns 40 city properties, but pays "no real-estate taxes on any of them," the city's complaint reads. If the Port Authority paid traditional taxes, the city would gain $18 million annually, according to the complaint.

"While the Port Authority has benefited handsomely from its acquisition and ownership of properties in the city, the city has suffered an undue loss of taxes," the 62-page complaint reads.

A Port Authority spokesman could not immediately be reached to comment. Officials at the bi-state agency, which has been under fire for months for issues related to the controversial George Washington Bridge lane closures, have been mum about Fulop's lawsuit threat, saying they won't comment on pending litigation.

According to Jersey City, the Port Authority pays $2.2 million in payments in lieu of taxes (PILOT) for seven of its 40 city properties.

The city cites the Journal Square transportation hub as an example of where it loses money because of what it calls "outdated" PILOT agreements. The Port Authority pays almost $90,000 annually in tax payments for the 9.3-acre property, which the city estimates would generate $9.6 million in traditional taxes.

Jersey City could be the recipient of a substantial sum if the Port Authority decides to settle. In 1998, Newark sued the agency, seeking underpaid rent, and thanks to a deal brokered with help from then-Gov. Jim McGreevey (a Fulop ally), the Port Authority handed over $100 million in tax relief to the city, plus $12.5 million annually for capital improvement projects.

Weiner Lesniak, the high-powered law firm that represented Newark in that case, is representing Jersey City in this one.